Wrong.
Otherwise Bittorrent itself would've been legally challenged.
Bittorrent Inc has been a company for years, never been shutdown or had any legal problems. It's based just a few miles from Hollywood.
Sourced from Wikipedia:
In 2004, Bram Cohen, with his brother Ross Cohen and business partner Ashwin Navin, formed BitTorrent Inc. By mid-2005, BitTorrent, Inc. was funded by venture capitalist David Chao from Doll Capital Management. In late 2005 Cohen and Navin made a deal with the MPAA and seven large studios in America to remove links to illegal content on the official BitTorrent website. The agreement means the site complies with procedures outlined in the Digital Millennium Copyright Act.
Should vtorrent wish to monetize/legitimise their work and business model, a similar legal agreement with the industry will have to be made.
It's a must do, a legal agreement will boost the value of vTorrent, and who doesn't want that ?!
I hope the team makes a priority out of this.